Strengthening Our investment Escalation Message from Key highlights our stewardship Our progress Our purpose approach and Our approach and exercising Our aspirations for 10 Pension Protection Fund Responsible Investment Report 2022/23 our Chair of the year commitment at a glance and governance incorporating ESG to engagement shareholder rights the coming year Appendices OUR PURPOSE AND GOVERNANCE CONTINUED Key governance actions this year The PPF Board has ultimate oversight, with the authority to approve and amend the strategy as deemed necessary. Reviewing our principles and policies A dedicated Sustainability Strategy Group was established in Our Board has committed to the Investment Committee 2022 to drive the strategy’s development and implementation, reviewing our Statement of Investment Principles (SIP) and which is chaired by our Head of ESG & Sustainability. all responsible investment policies annually to ensure they A number of internal working groups have also been set stay relevant and ambitious. up to identify priority areas (for example, organisational emissions, climate risk management, diversity & inclusion, During the year, the Investment Committee reviewed our employee engagement & community impact, responsible SIP, our Climate Change Policy, our Stewardship Policy investment, and sustainable procurement) that are material and our Minimum Standards Policy. The committee also to the PPF’s business. These groups will ensure we embed approved our new voting guidelines. All policies are sustainability in every decision-making process. available on our website. We determined four key Sustainability Goals by integrating Launching our sustainability strategy the resources from SASB Materiality Map for Asset This year saw the publication of the PPF’s sustainability Management/Insurance, The Five Capitals framework strategy, another critical development to help ensure the for sustainability and our own ICARE Values. Each goal Fund’s longevity, enable us to lead by example and catalyse addresses speci昀椀c ESG business risks that we feel are the growth of a more sustainable pensions industry. material to our organisation. We have established internal KPIs to measure our progress against these and ensure accountability. We also considered the UN Sustainable Development Goals (SDGs) and were able to map seven SDGs under the PPF’s four key goals. Our sustainability goals Demonstrating excellence in Ensuring e昀昀ective stakeholder engagement responsible investment with integrity and respect • Looking after our assets • Community impact • Employee and stakeholder engagement Financial Capital Human & Social Capital Championing collaboration and leading Being accountable for minimising our own by example environmental impacts • Diversity & inclusion • Operations • Business ethics • Supply chain Social Capital Natural & Manufactured Capital